Wisconsin: A new GOP legislative proposal would grant up to $5 million a year in tax credits for film production companies.

The bill from Wisconsin would also create a State Film Office, attached to the Department of Tourism, to oversee the program, which would allow credits such as up to 25% of the salary or wages paid to employees during the year with some limitations.

Reps. David Armstrong of Rice Lake and Calvin Callahan of Tomahawk and Sen. Julian Bradley of Franklin recently circulated a co-sponsorship memo on the legislation. Wisconsin is one of five states with no film office or commission and one of ten without production incentives, according to the memo.

“Without production incentives and a state film office to market Wisconsin, we’re leaving money on the table,” they wrote.

GOP lawmakers in 2013 eliminated a similar program that had existed for almost eight years. Then-Gov. Jim Doyle capped grants at $500,000 and tried to kill the program in 2009, but was rebuffed. An audit by the then-Commerce Department found the 2009 film “Public Enemies” received $4.6 million in tax credits while generating only $5 million in economic activity in Wisconsin.

The lawmakers note other Midwest states including Illinois, Indiana, Ohio and Minnesota are investing in film, TV and advertising industries, “attracting significant outside investment by offering meaningful state production incentives.”

Their bill would establish minimum spending requirements for the credits, ensuring part of the production budget is spent within Wisconsin, the memo shows.

Production companies would be able to claim an income and franchise tax credit equal to 25% of qualifying production expenditures, and the state would issue a refund if the total amount of credits exceeds its tax liability, according to the Legislative Reference Bureau. And they could claim a credit for the first three taxable years of doing business in Wisconsin equal to 25% of certain property purchases.

The bill also includes provisions requiring the State Film Office to annually report to lawmakers on the tax credit program, and directing the Legislative Audit Bureau to audit the program on a biennial basis.

See the memo HERE

Article originated in: WisBusiness